KFX Candlestick Tendency
This is a simple indicator to show if global and local trend directions are the same. It uses two timeframes, a "local" timeframe and a higher order "global" timeframe. The indicator shows price action only and has no lag. It generates a square wave (green line), the output signal is above zero if the price tendency is bullish upward, and below zero for bearish downward tendency. The red line shows the tendency of a higher order timeframe (the global tendency). The idea is to trade long when price tends to grow on both timeframes (indicator showing both lines cross zero and go above), and vice versa, trade short when the price tends down (both lines cross zero and go below). Close or exit positions on the opposite signal. The global timeframe setting of at least 4x local timeframe is recommended, for example, M15/H1, or H1/H4, etc.
The indicator is suitable for trend, reversal and pullback trading.
For trading I prefer timeframe H1 as "local" and timeframe H4 as "global". I think the indicator provides the best signals here.
- HighOrderTimeFrame - change the value for the "global" timeframe between M1-MN (red line)
- All colors are adjustable
- 24 is the default "lookback" value (in cadlesticks/ bars)
- There is also an option to adjust the "lastbar" value, which is 0 by default. A value of 1 would tell the indicator to ignore the current candlestick/bar when measuring.